Group 1 - L.B. Foster reported a quarterly loss of $0.02 per share, significantly missing the Zacks Consensus Estimate of $0.29, representing an earnings surprise of -106.90% [1] - The company posted revenues of $128.18 million for the quarter ended December 2024, which was 3.78% below the Zacks Consensus Estimate and down from $134.88 million a year ago [2] - L.B. Foster shares have declined approximately 4.2% since the beginning of the year, while the S&P 500 has decreased by -0.5% [3] Group 2 - The current consensus EPS estimate for the upcoming quarter is $0.25 on revenues of $131.81 million, and for the current fiscal year, it is $1.70 on revenues of $574.31 million [7] - The Steel - Producers industry, to which L.B. Foster belongs, is currently ranked in the bottom 13% of over 250 Zacks industries, indicating potential challenges for stock performance [8]

Financial Performance - L.B. Foster Company reported a 14.2% increase in rail segment sales, reaching $79.2 million in Q4 2024, with gross margins improving by 300 basis points to 22.2%[2][10] - Infrastructure segment sales decreased by 25.2% to $49.0 million in Q4 2024, with gross margins declining by 90 basis points to 22.6%[2][11] - The company achieved adjusted EBITDA of $7.2 million in Q4 2024, an increase of 18.7% compared to the prior year[2][4] - Free cash flow for the full year 2024 was $22.6 million, with total debt declining by $21.6 million to $46.9 million[2][4] - Net sales for the year ended December 31, 2024, were $530.8 million, a decrease of $13.0 million, or 2.4%, from the prior year[18] - Gross profit for the year ended December 31, 2024, was $118.1 million, an increase of $6.0 million, or 5.4%, with gross profit margins expanding by 160 basis points to 22.2%[18] - Operating income for the year ended December 31, 2024, was $20.5 million, an increase of $11.4 million over the prior year[18] - Net income attributable to the Company for the year ended December 31, 2024, was $42.9 million, or $3.89 per diluted share, favorable by $41.5 million over the prior year[18] - Adjusted EBITDA for the year ended December 31, 2024, was $33.6 million, a $1.8 million increase, or 5.7%, over the prior year[18] - Total net sales for Q4 2024 were $128.183 million, a decrease of 5.0% compared to $134.877 million in Q4 2023[36] - Gross profit for the fourth quarter of 2024 was $11.1 million, a decrease of $4.3 million, or 28.1%, from the prior year quarter[14] - Operating income for the year ended December 31, 2024, was $20.513 million, significantly higher than $9.107 million in 2023[28] - Adjusted EBITDA for Q4 2024 was $7.238 million, up from $6.099 million in Q4 2023, reflecting a growth of 18.7%[36] Orders and Backlog - The backlog as of Q4 2024 was $185.9 million, a decrease of 13.0% from the prior year, primarily due to lower demand in rail products[2][9] - New orders totaled $107.2 million in Q4 2024, reflecting a 1.6% increase year-over-year, driven by the Infrastructure Solutions segment[2][9] - New orders for the year ended December 31, 2024, totaled $506.5 million, a decrease of $22.5 million, or 4.3%, from the prior year[18] - Backlog as of December 31, 2024, was $185.9 million, a decrease of $27.9 million from the prior year[18] - New orders for Rail, Technologies, and Services increased to $308.394 million in 2024, a rise of 2.9% from $299.584 million in 2023[37] Expenses and Debt - Selling and administrative expenses decreased by 10.4% to $24.4 million in Q4 2024, contributing to improved profitability[2][6] - Selling and administrative expenses for the year ended December 31, 2024, were $96.4 million, a decrease of $1.2 million, or 1.3%, from the prior year[18] - The gross leverage ratio improved to 1.2x as of December 31, 2024, down from 1.7x a year earlier[2][7] - The company reported a net debt of $44.486 million as of December 31, 2024, down from $65.409 million in 2023[36] - Total stockholders' equity increased to $179.014 million in 2024, compared to $142.835 million in 2023[30] Future Outlook - L.B. Foster Company authorized a new 3-year $40 million stock repurchase program, replacing the previous $15 million program[2][5] - The company expects 2025 net sales to range from $540 million to $580 million, with adjusted EBITDA projected between $42 million and $48 million[2][3] Organic Sales - Organic sales declined by 3.8% in Q4 2024, with a reported decrease of $5.109 million compared to the previous year[36]

Core Insights - L.B. Foster Company reported strong cash generation and improved profitability in Q4 2024, with rail segment sales up 14.2% and gross margins increasing by 300 basis points to 22.2% [2][4][9] - The infrastructure segment faced challenges, with sales down 25.2% and gross margins decreasing by 90 basis points to 22.6% due to lower pipeline coating volumes [2][4][13] - The company achieved a net loss of $0.3 million in Q4 2024, an improvement from a loss of $0.5 million in the prior year [4][26] - Free cash flow was stronger than expected, allowing for debt reduction and an increase in share repurchases, totaling 300,302 shares or approximately 3% of outstanding shares [2][4][5] Financial Performance - Q4 2024 net sales were $128.2 million, a decrease of 5.0% from the prior year, while full-year 2024 net sales totaled $530.8 million, down 2.4% [4][12] - Gross profit for Q4 2024 was $28.6 million, flat compared to the prior year, with a gross profit margin of 22.3%, reflecting a 100 basis point improvement [4][6] - Selling and administrative expenses decreased by 10.4% in Q4 2024, contributing to improved operating income of $3.1 million [4][6][14] Segment Analysis - Rail, Technologies, and Services segment saw net sales of $79.2 million in Q4 2024, up 14.2% year-over-year, with gross profit increasing by 31.7% [7][9] - Infrastructure Solutions segment reported net sales of $49.0 million in Q4 2024, down 25.2% from the previous year, with a significant decline in gross profit [10][13] - New orders for the Rail segment decreased by 8.5%, while the Infrastructure segment saw a 14.9% increase in new orders [7][10] Guidance and Strategic Outlook - The company provided 2025 financial guidance, expecting net sales between $540 million and $580 million and adjusted EBITDA between $42 million and $48 million [3][4] - The guidance reflects a projected 34% growth in adjusted EBITDA driven by 5.5% organic sales growth, supported by federal infrastructure investment [2][3] - A new three-year $40 million share repurchase program was authorized, indicating confidence in future performance [5][4]

Core Viewpoint - L.B. Foster Company will release its fourth quarter and full year 2024 operating results on March 4, 2025, and will host a conference call to discuss these results and the market outlook [1][2]. Group 1: Earnings Release and Conference Call - The earnings release is scheduled for pre-market opening on March 4, 2025 [1]. - A conference call will take place at 11:00 A.M. Eastern Time on the same day to discuss operating results and business developments [1]. - The conference call will be available as a live webcast on the Company's Investor Relations page [2]. Group 2: Participation Details - Interested participants can register for the question-and-answer session to receive dial-in numbers and a unique PIN [3]. - It is recommended to join the call 10 minutes prior to the start time [3]. Group 3: Company Overview - L.B. Foster Company, founded in 1902, is a global technology solutions provider focused on engineered products and services for infrastructure [4]. - The Company operates in North America, South America, Europe, and Asia, addressing safety, reliability, and performance needs [4].

Core Viewpoint - L.B. Foster Company reported significant earnings growth in Q3 2024, with adjusted earnings surpassing expectations despite a decline in revenues and new orders. Financial Performance - The company logged Q3 2024 earnings of $3.27 per share, a substantial increase from 5 cents per share in the same quarter last year. Adjusted earnings were 54 cents per share, exceeding the Zacks Consensus Estimate of 49 cents [1] - Revenues for the quarter were $137.5 million, down approximately 5% year over year, and missed the Zacks Consensus Estimate of $144.6 million [2] - New orders totaled $96 million, reflecting a decrease of around 4% year over year [3] Segment Performance - Sales from the Rail, Technologies, and Services segment fell 8.5% year over year to $79.5 million, primarily due to a decline in Rail Products, which offset gains in Global Friction Management and Technology Services and Solutions [4] - The Infrastructure Solutions segment reported sales of $58 million, down roughly 1% year over year, impacted by the exit of the bridge grid deck product line [4] Financial Position - The company ended the quarter with cash and cash equivalents of approximately $3.1 million, a decrease of around 22% sequentially. Long-term debt was about $68.4 million, down roughly 21% from the prior quarter [5] - Cash provided by operating activities was $24.7 million for the quarter [5] Outlook - L.B. Foster expects adjusted EBITDA in the range of $34.5-$36.5 million for 2024 and net sales between $530-$540 million [6] Stock Performance - L.B. Foster's shares have increased by 17.4% over the past year, contrasting with a 5.8% decline in the industry [7]

Financial Data and Key Metrics Changes - The company reported a gross margin of 23.8%, the highest level in over a decade, up 490 basis points from the previous year [8] - Net income for the quarter was $35.9 million, which included a $30 million favorable tax valuation reserve adjustment [9][18] - Adjusted EBITDA was $12.3 million, reflecting a 16.4% increase year-over-year despite lower sales [9][19] - Cash from operations totaled $24.7 million, an increase of $6.1 million compared to the same quarter last year [20] Business Line Data and Key Metrics Changes - Net sales decreased by 5.4%, primarily due to domestic rail commercial weakness, with organic sales down 8.5% [15] - Rail segment revenues were $79.5 million, down 8.5% year-over-year, driven by weaker commercial conditions [24] - Infrastructure Solutions segment revenue decreased by $0.5 million or 0.9%, with growth in Precast Concrete offsetting declines in other areas [26] Market Data and Key Metrics Changes - The trailing 12-month organic growth rate was 3%, with a greater sales mix coming from growth platforms [23] - Rail orders increased by $2.9 million, driven by demand in Rail Products and Global Friction Management [25] - Infrastructure orders were $43.3 million, down $7.1 million from the prior year, primarily due to softer demand in Steel Products [27] Company Strategy and Development Direction - The company is focused on transforming its profitability profile and enhancing cash generation [8] - Capital spending is expected to run at approximately 1.5% to 2% of sales over the long term, with elevated spending in 2024 for growth platforms [38] - The company plans to continue its stock buyback program while maintaining a balanced view of leverage and growth [38] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the recovery of market conditions, particularly in the Rail segment, and highlighted strong demand in growth platforms [43][49] - The company anticipates a long-term infrastructure investment super cycle, which should support sustainable growth [49] - Management noted that while infrastructure markets are somewhat choppy, demand in growth platforms remains robust [44] Other Important Information - The company has made modest updates to its 2024 financial guidance, lowering sales expectations slightly but maintaining adjusted EBITDA outlook [12] - The effective tax rate is expected to return to approximately 28% starting in the fourth quarter due to the release of the federal tax valuation allowance [19] - The company is targeting a capital expenditure of $3.5 million to $4 million for a new facility in Central Florida, expected to begin production by the end of the year [61] Q&A Session Summary Question: What are the expected revenue targets for 2025? - Management indicated that revenue targets for 2025 are projected between $580 million and $620 million, driven by growth platforms and organic sales [56] Question: How should gross margins be viewed moving forward? - Management stated that while the current gross margin of 23.8% is higher than historical levels, they expect margins to remain between 22% and 23% in 2025 as part of their strategy to transform the company [59] Question: What is the timeline and CapEx for the new facility in Central Florida? - The facility is a brownfield installation with an expected first product by the end of the year, requiring a capital investment of $3.5 million to $4 million [61] Question: Will targeted bolt-on acquisitions focus on U.S. operations? - Management confirmed that approximately 95% of sales are in North America, and they plan to focus on U.S. operations for any bolt-on acquisitions [65]

Financial Performance - Third quarter net sales were $137.5 million, down $7.9 million or 5.4% year over year[6] - Net income for the third quarter was $35.9 million, an increase of $35.4 million year over year, primarily due to a $30.0 million tax valuation allowance adjustment[8] - Adjusted EBITDA for the third quarter was $12.3 million, up 16.4% from the prior year[10] - Gross profit for Q3 2024 was $18.5 million, an increase of $1.2 million, with gross profit margins rising 340 basis points to 23.2%[14] - Segment operating income for Q3 2024 was $4.9 million, a $1.1 million increase compared to the prior year quarter, driven by improved gross profit[15] - Net sales for Q3 2024 were $58.0 million, a decrease of $0.5 million or 0.9% from Q3 2023, with an adjusted organic sales decline of 1.9%[17] - For the first nine months of 2024, net sales were $402.6 million, down $6.3 million or 1.5% from the prior year period[22] - Gross profit for the first nine months of 2024 was $89.4 million, a $6.1 million increase year-over-year, with gross profit margins increasing by 180 basis points to 22.2%[22] - Total net sales for the three months ended September 30, 2024, were $145,345, an increase of 5.4% compared to $137,466 for the same period in 2023[39] - The company reported a total adjusted sales change of $(9,856) million, representing a 6.7% decline from 2023 to 2024[48] Cash Flow and Operations - Cash provided by operations totaled $24.7 million, an increase of $6.1 million compared to the prior year quarter[12] - Cash used by operating activities in the nine months ended September 30, 2024 totaled $1.7 million, an increased use of $17.0 million compared to the prior year[29] - The company expects to generate approximately $30 million to $35 million in free cash flow in the second half of the year[3] - Cash and cash equivalents increased to $3,135 as of September 30, 2024, compared to $2,560 at the end of December 31, 2023[41] - Total current assets rose to $173,454 as of September 30, 2024, up from $167,355 at the end of December 31, 2023[41] Debt and Leverage - The Gross Leverage Ratio improved to 1.9x, a decrease of 0.8x during the quarter[12] - Long-term debt increased to $68,377 as of September 30, 2024, compared to $55,171 at the end of December 31, 2023[41] - The company reported a net debt of $65,242, calculated as total debt of $71,377 minus cash and cash equivalents[44] - Total debt as of September 30, 2024, was $68,544 million, down from $71,689 million a year earlier[48] - Net debt decreased to $65,409 million as of September 30, 2024, compared to $68,720 million in the same period of 2023[48] Orders and Backlog - New orders for the third quarter totaled $96.0 million, a decrease of $4.3 million or 4.3% from the prior year[11] - Backlog decreased to $209.0 million, down $34.2 million or 14.1% year over year[11] - Orders increased by $2.9 million year-over-year, with a backlog of $88.7 million, down $5.0 million from the prior year quarter[16] - New orders for Q3 2024 totaled $43.3 million, down $7.1 million from the prior year quarter, reflecting a decline in the Protective Coatings business[20] - New orders for the first nine months of 2024 totaled $399.4 million, a decrease of $24.2 million or 5.7% from the prior year period[28] Strategic Focus and Market Outlook - The company anticipates continued focus on strategic growth initiatives and market expansion in the upcoming quarters[40] - Capital spending as a percentage of sales is projected to be between 2.0% and 2.5% for 2024[4] - The company made adjustments to exclude non-routine costs, which are considered useful for evaluating ongoing operations[42] Profitability Metrics - Gross margin improved to 23.8%, the highest level in over ten years, reflecting a 490 basis point increase from the previous year[7] - Gross profit for Q3 2024 was $14.3 million, a $4.1 million increase, with gross profit margins increasing 720 basis points to 24.6%[18] - The gross profit margin for 2024 is reported at 23.8%, an increase from 18.9% in 2023[49] - The adjusted gross profit margin for 2023 was 21.2%, while the margin for 2024 is projected to be 22.3%[50] Income and Earnings - Operating income for the three months ended September 30, 2024, increased to $1,617 from $7,323 in the same period of 2023[39] - Net income attributable to L.B. Foster Company for the three months ended September 30, 2024, was $515, a significant decrease from $35,905 in the prior year[39] - The net income for the three months ended September 30, 2024, was $35,898 million, a significant increase from $447 million in the same period of 2023[47] - Organic sales growth for the three months ended September 30, 2024, showed a decline of 5.9% compared to the same period in 2023, with net sales reported at $137,466 million[48]

Core Viewpoint - L.B. Foster Company is set to release its third quarter results on November 7, 2024, and will host a conference call to discuss the results and market outlook [1]. Group 1 - The earnings release will occur pre-market opening on November 7, 2024 [1]. - A conference call is scheduled for 11:00 A.M. Eastern Time on the same day to discuss operating results and business developments [1]. - A presentation will be available on the Company's Investor Relations page immediately after the earnings release [1]. Group 2 - The conference call will be webcasted live and will be listen-only [2]. - A replay of the webcast will be available until November 14, 2024, on the Investor Relations page [2]. Group 3 - Interested participants can register for the question-and-answer session to receive dial-in numbers and a unique PIN [3]. - It is recommended to join the call 10 minutes prior to the start time [3]. Group 4 - L.B. Foster Company, founded in 1902, is a global technology solutions provider focused on engineered products and services for infrastructure [4]. - The Company operates in North America, South America, Europe, and Asia, addressing safety, reliability, and performance needs [4].

Core Points - L.B. Foster Company will present at the Singular Research Autumn Equinox 2024 Webinar on September 11, 2024, at 9:00 AM EST [1] - Presentation materials will be available on the Company's Investor Relations website on the day of the conference [1] - A video webcast and replay will be accessible online, with the replay available for 30 days [2] Company Overview - L.B. Foster Company, founded in 1902, is a global technology solutions provider specializing in engineered and manufactured products and services for infrastructure [3] - The Company focuses on innovative engineering and product development solutions to meet safety, reliability, and performance needs [3] - L.B. Foster has a global presence with locations in North America, South America, Europe, and Asia [3]

Financial Data and Key Metrics Changes - Net sales for Q2 2024 decreased by 4.9% in total and 3.4% on an organic basis, primarily due to weakness in the Rail segment [10][12] - Adjusted EBITDA for the quarter was $8.1 million, down 23.8% compared to the previous year [12] - Net income for the quarter totaled $2.8 million, a decrease of 19.4% year-over-year [12] Business Line Data and Key Metrics Changes - Rail segment revenues were $85.6 million, down 6.6% from last year, with a 5% organic decline driven by lower volumes and softer market prices [15] - Infrastructure Solutions segment revenue decreased by $1.2 million or 2.2%, with organic sales relatively flat compared to the prior year [17] - Adjusted gross margins improved by 460 basis points since 2021, with trailing 12-month adjusted EBITDA up 64% [7] Market Data and Key Metrics Changes - Rail orders increased by $1 million year-over-year, with a backlog of $114.8 million, down $17.7 million from the prior year [16] - Infrastructure orders were $54 million, down $13.8 million from the prior year quarter due to softer demand [17] - Consolidated backlog decreased by $40 million from record high levels last year, with both segments experiencing declines [25] Company Strategy and Development Direction - The company has transformed into a technology-oriented global infrastructure solutions provider, focusing on Rail Technologies and Precast Concrete as growth platforms [6] - A restructuring program was announced to generate annual run rate savings of $4.5 million, aimed at optimizing cash generation and focusing on growth initiatives [7][23] - The company plans to continue evaluating opportunities for small acquisitions and considers dividends as a capital allocation option as free cash flow improves [24] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism for the second half of 2024, expecting profitability expansion despite near-term uncertainties in the market [8][27] - The company anticipates a strong Q4, driven by deferred projects and improved demand in the rail and infrastructure sectors [54] - Management highlighted the importance of infrastructure investment and the positive impact of federal programs on future growth prospects [29] Other Important Information - The company has repurchased approximately 204,000 shares of stock since the program's inception in February 2023 [21] - Legal expenses of approximately $800,000 were incurred in the quarter due to an ongoing matter, with potential for additional costs [50] Q&A Session Summary Question: How to think about softness in demand in rail and coatings? - Management expects a rebound in the second half of the year, with a projected 29% increase in EBITDA delivery [35] Question: What are the main drivers for revised free cash flow guidance? - The timing of business in the Rail segment is likely to push volume to the latter part of the year, affecting working capital requirements [36] Question: What is the impact of the restructuring program on SG&A? - The restructuring is expected to reduce costs by $4.5 million annually while focusing on growth initiatives [38] Question: Is the Rail Technologies business continuing to improve margins? - Management noted that while there are headwinds, the technology-oriented monitoring business has shown profitability improvements [42] Question: What is the outlook for the UK business? - The UK business is showing signs of recovery, with management optimistic about its future contributions [52] Question: What is the impact of weather on infrastructure sales? - Weather has caused delays, but management expects pent-up demand to drive sales in the second half of the year [56]